Bitcoin and Ethereum staged a strong recovery during the June 29 to July 3 trading week, erasing steep early-week losses as softer-than-expected US economic data revived expectations of Federal Reserve (Fed) interest rate cuts and improved appetite for risk assets.
Bitcoin began the week hovering around the US$60,000 mark before tumbling to an intraday low below US$58,000 on July 1, its weakest level in nearly two years. The world’s largest cryptocurrency then rebounded sharply, climbing back above US$62,000 by July 3 to post a weekly gain of about 3%.
The recovery was supported by renewed inflows into spot Bitcoin exchange-traded funds (ETFs), easing geopolitical tensions and growing optimism that weaker US labour market data could pave the way for lower interest rates.
Ethereum, on the other hand, outperformed Bitcoin over the week, surging more than 10% from lows near US$1,560 to around US$1,730-US$1,780 by week’s end.
While the second-largest cryptocurrency remains well below last year’s highs, bargain hunting, improving market sentiment and expectations of a more accommodative monetary policy helped fuel its rebound after a prolonged sell-off.
Despite the late-week rally, market sentiment remained cautious. Investors continued to monitor ETF flows, macroeconomic indicators and geopolitical developments for clues on the next direction of digital assets, with volatility expected to persist as markets assess the timing of potential Fed policy easing.
